What are the features of LIC?

Asked by: Mrs. Jennie Murray  |  Last update: December 19, 2022
Score: 4.5/5 (48 votes)

Features of LIC
  • As a Savings Institution. Life insurance mobilizes as well as promotes the savings in the country. ...
  • Investment Institution. A large part of an investment by LIC is in government securities. ...
  • Stabilizes the Share Market. ...
  • Loan finance defects. ...
  • Dependency on institutional sources.

What are features of life insurance?

Features of life insurance plans
  • Issued in the name of the policyholder. ...
  • Flexible premium payments. ...
  • Customizable tenure. ...
  • Customizable sum assured. ...
  • Pay-out on death or on maturity. ...
  • Ability to assign nominees. ...
  • Features an investment component.

What is LIC and its benefits?

LIC envisages your individual insurance needs and renders plans that suit you best. The dual advantage of protection and savings, integrated with financial assistance keep you insured lifelong. It is one of the oldest Life Insurance company in India.

What is the importance of LIC?

The primary objective of LIC of India is to spread the importance of life insurance widely in the rural areas and people belonging to socially and economically backward classes. The company functions with a view of providing such individuals with financial cover against death at a reasonable cost.

What do you know about LIC?

1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

Part-2 L-2 Objective of LIC and Activities of LIC and organisations Structure of LIC in hindi & easy

24 related questions found

What are the important features of LIC Act 1956?

The LIC was established with the following objectives: Spread life insurance widely and in particular to the rural areas, to the socially and economically backward claries with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.

Which of the following is major feature of life insurance?

Financial Security

The primary importance of a life insurance policy is that it provides your family with long-term financial security. Life insurance policies provide a lump sum money to financially support your family in the case of your early demise.

What are the benefits of insurance?

Benefits of Insurance Coverage
  • Provides Protection. Insurance coverage does reduce the impact of loss that one bears in perilous situations. ...
  • Provides Certainty. Insurance coverage provides a feeling of assurance to the policyholders. ...
  • Risk Sharing. ...
  • Value of Risk. ...
  • Capital Generation. ...
  • Economic Growth. ...
  • Saving Habits.

Is LIC really beneficial?

Benefits of purchasing LIC Policy

Government-owned - LIC comes with the sovereign guarantee of the Indian government, which makes its offerings a safe and reliable investment. Tax Benefits - Policyholders can enjoy tax deductions on the premium amount under Section 80C of the Income Tax Act, 1961.

How LIC scheme works?

Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. » Unfortunate death, if it occurs earlier. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder.

What are the advantages of life insurance policies?

  • 5 Top Benefits of Life Insurance. ...
  • Life Insurance Payouts Are Tax-Free. ...
  • Your Dependents Won't Have to Worry About Living Expenses. ...
  • Life Insurance Can Cover Final Expenses. ...
  • You Can Get Coverage for Chronic and Terminal Illnesses. ...
  • Policies Can Supplement Your Retirement Savings.

What are insurance features?

Special features are the details in an insurance contract that make it different from any other legally binding contract.

What are the features of an insurance contract?

Features of Insurance Contract
  • Aleatory. Insurance contracts are Aleatory as promise comes into picture only on occurrence of event. ...
  • Adhesion. ...
  • Unilateral. ...
  • Personal Contract. ...
  • Conditional. ...
  • Valued or Indemnity Contract: ...
  • Utmost Good Faith: ...
  • Material Facts:

What are the 4 types of insurance?

Different Types of General Insurance
  • Home Insurance. As the home is a valuable possession, it is important to secure your home with a proper home insurance policy. ...
  • Motor Insurance. Motor insurance provides coverage for your vehicle against damage, accidents, vandalism, theft, etc. ...
  • Travel Insurance. ...
  • Health Insurance.

What are the 3 main types of insurance?

Then we examine in greater detail the three most important types of insurance: property, liability, and life.

What is insurance risk?

In insurance terms, risk is the chance something harmful or unexpected could happen. This might involve the loss, theft, or damage of valuable property and belongings, or it may involve someone being injured.

What is the types of insurance?

Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have. Always check with your employer first.

Which of the following is not a feature of insurance?

The functions of insurance are risk sharing, assisting in capital formation, economic progress, etc. Lending of funds is not a function of insurance.

Can I withdraw money from LIC?

A life assured is only able to surrender his/her LIC policy after having paid the premium for about 3 years. LIC provides a certain amount of money to the policyholder while withdrawing the policy online. This specific amount of money is surrender value.

Which LIC plan has highest return?

They can opt the following LIC highest return plans to maximize their investment.
  • LIC Jeevan Akshay VI.
  • LIC New Children's Money Back Plan.
  • LIC New Endowment Plan.
  • LIC's Accidental Death and Disability Rider:

Which policy gives maximum returns?

LIC Plans with Highest Return. LIC offers a wide range of life insurance policies designed to provide higher returns. The following plans by LIC provide you with the maximum benefits - Jeevan Amar, New Children's Money Back Plan, New Endowment Plan, New Money Back Plan- 20 years, and New Jeevan Anand Plan.

Who is the father of insurance?

Solomon Huebner's designation as the “father of insurance education” is undisputed. He taught the first course ever given in insurance, established the insurance department — and became the architect of the modern financial services industry.

Which is the first insurance company in India?

In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer. At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business.